Germany sees open questions in Opel bids

[May 09, 2009]  BERLIN (AP) -- Germany's economy minister was quoted as saying Saturday that questions remain over plans by both Fiat SpA and auto parts maker Magna International Inc. to invest in General Motors' main European unit, Opel, and stressed that he is equally open to both suitors.

Fiat's chief executive, Sergio Marchionne, has visited Germany twice in the past week to present officials his plan to make GM Europe, including German-based Adam Opel GmbH, part of a global automotive powerhouse also including Chrysler.

Canadian-based Magna has said it is in talks about options for Opel that might include taking a minority stake, but otherwise has given few details.

"Both concepts, both Magna's and Fiat's, still include open questions that need to be cleared up," Economy Minister Karl-Theodor zu Guttenberg was quoted as telling the weekly Der Spiegel. "For the time being, I view both concepts with the same openness and skepticism."

Guttenberg did not elaborate on the questions that remain.

General Motors Corp. has been trying to find investors for noncore and unprofitable assets to help stave off collapse. Opel employs some 26,000 people in Germany - nearly half GM Europe's total work force.

"Of course, we want to secure as many jobs and facilities as possible; at the same time we have the obligation to deal responsibility with tax money," Guttenberg was quoted as saying. Germany cannot "pay a loan guarantee come what may, regardless of how questionable or solid the concepts to save Opel are in the end."

Earlier this week, he said Fiat's plan would require short-term financing estimated at euro5-7 billion ($6.7-9.4 billion) Europe-wide, which could be covered by loan guarantees from governments.

Guttenberg said a GM bankruptcy filing in June could not be ruled out, Der Spiegel reported.

If, by that stage, GM is largely in agreement with an investor on a satisfactory concept for Opel, "we are considering among other options, for example, a model in which the GM holding in Opel could temporarily be passed to a trustee," he was quoted as saying. A bank consortium could offer bridging aid, he suggested.

Guttenberg again firmly rejected the idea of the government taking a stake in Opel itself, Der Spiegel reported.

[Associated Press]

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